The Redemption Process

🔄 Flexibility with ORB3 and esORB3

The Orb3 ecosystem allows for seamless redemption between ORB3 and esORB3 tokens in both directions, with different rules applicable depending on the direction of redemption.

Redeeming ORB3 for esORB3:

• ORB3 may be redeemed for esORB3 at any time without penalty or restriction 🚫.

• The conversion ratio is always 1:1, ensuring a straightforward and fair exchange process 🔁.

Redeeming esORB3 for ORB3:

• Converting esORB3 back to ORB3 includes an unlock period, which the user can select 🗓️.

• The conversion ratio increases proportionally with the redemption duration:

  • Minimum redemption duration of 15 days: 1:0.25 ratio (25%)

  • Middle redemption duration of 3 months: 1:0.625 ratio (62.5%)

  • Maximum redemption duration of 6 months: 1:1 ratio (100%)

• If a redemption duration less than the maximum is selected (ratio < 1:1), the penalty amount of esORB3 is burned 🔥.

• Users can freely cancel the esORB3 redeeming process at any time ⏹️.

• Cancellation before completion voids the entire process, returning the full esORB3 amount to the user without converting to ORB3.

• The Orb3 Foundation may reserve up to 50% of the would-be burned esORB3 to support the Network 🌐.

• During the redemption of esORB3 for ORB3, all esORB3 is automatically allocated to the yield account, but only for 50% of its value 💹.

This redemption process in the Orb3 ecosystem offers users flexibility and choice, balancing incentives and penalties to maintain the integrity and stability of the network's economy.